Conservatives Propose Substituting "Rip-off" Degrees with Apprenticeships

The Conservative Party suggests replacing what they perceive as overpriced university degrees with apprenticeship opportunities, aiming to provide alternative paths to skill acquisition and employment.

If successful in the upcoming July election, the Conservatives pledge to eliminate certain university programs in England, reallocating funds to support the creation of 100,000 apprenticeships annually. They assert their intention to substitute underperforming degrees, which they perceive as overpriced due to high dropout rates and limited career prospects. 

Labour has voiced criticism towards the government for a decrease in new apprenticeships, emphasizing the importance of directing these opportunities toward young individuals. The Liberal Democrats accused the government of marginalizing apprentices, likening their treatment to that of secondary workers.

The Conservatives criticized former Labour Prime Minister Tony Blair's aim to have half of young people attend university, arguing that it led to an increase in low-value degrees. Currently, in England, the Office for Students (OfS) has the authority to investigate and penalize universities that fail to meet certain standards, such as through fines. 

The Conservatives propose implementing a new legislation granting the independent regulator the power to shut down the poorest-performing university courses, based on criteria including dropout rates, career advancement, and future earnings potential. Prime Minister Rishi Sunak, speaking at a railway depot in Cornwall, emphasized that while university remains a valuable option, it's not the sole path, and certain degree programs are failing to meet expectations for young people.

According to Schools Minister Damian Hinds in an interview with BBC Radio 4's Today program, there has been a significant improvement in the quality of apprenticeships during Conservative administrations. He emphasized the importance of seizing available opportunities for young people and assisting businesses with the new initiative. Addressing concerns about apprenticeship dropouts, Hinds acknowledged that some individuals may change career paths mid-apprenticeship, but highlighted the skills and experience gained during their tenure. He stressed the complexity of identifying "rip-off" degrees, suggesting that it varies across specific courses rather than broad subject areas. For example, he cited the wide spectrum of earnings outcomes among graduates of computer science programs, ranging from £18,000 to £80,000.

The prime minister has previously made commitments to address what he terms as "rip-off university courses." Last July, the government unveiled plans to urge the Office for Students (OfS) to restrict student enrollment in courses that fail to deliver satisfactory outcomes. The Conservative Party projected potential savings of £910 million by 2030 through the elimination of courses attended by 13% of students. 

This estimation is based on the premise that taxpayers absorb student loan costs when graduates' earnings fall short, suggesting that discontinuing programs with lower income prospects would reduce unpaid debt. The party's calculations assume that 75% of affected students would transition into employment or apprenticeships. However, since there is no overarching cap on university admissions in England, institutions could offset closures by enrolling students in other degree programs.

The Conservatives stated that the savings would enable the government to allocate £885 million towards establishing an additional 100,000 apprenticeships annually by the conclusion of the subsequent Parliament.

Neil Carberry, the chief executive of the Recruitment and Employment Confederation trade body, expressed concern, remarking that the announcement seemed to diminish university courses in favor of apprenticeships. He stressed the importance of both sectors thriving for economic growth.

Apprenticeships receive funding from taxpayers and the apprenticeship levy, essentially a tax imposed on larger businesses. Both larger and smaller enterprises can access these funds exclusively for apprentice training.

According to Mr. Carberry, the levy increases the cost of delivering apprenticeships, particularly at lower levels aimed at younger individuals, making it more advantageous for firms to undertake fewer apprenticeships.

He noted that although higher-level apprenticeships serve as alternatives to degrees for certain individuals, they fail to cater to those who would not have pursued university education and require alternative pathways to skilled employment.

Rachel Hewitt, the chief executive at MillionPlus, the Association for Modern Universities, emphasized that while apprenticeships play a crucial role in the skills sector, they should not be juxtaposed against higher education. She highlighted that modern universities nationwide already offer outstanding degree apprenticeships, integrating degree-level education with practical industry experience, enabling students to earn while they learn.

Labour's shadow education secretary, Bridget Phillipson, criticized the announcement, labeling it as "laughable" due to the Conservatives' alleged responsibility for a 50% decline in apprenticeships for young individuals. She reiterated her party's commitment to establishing technical excellence colleges tailored to local industries and overhauling the apprenticeship levy into a "growth and skills levy." This reform, according to Labour, would enable businesses to allocate up to half of their levy contributions towards more adaptable training programs.

Munira Wilson, the education spokeswoman for the Liberal Democrats, accused the Conservatives of mishandling the apprenticeship system, advocating for urgent reforms. She highlighted the persistently low wages for apprentices, asserting that this issue would deter individuals from pursuing apprenticeships and exacerbate dropout rates.

How many people do apprenticeships?

There are no comprehensive UK-wide statistics available for the total number of apprenticeships, but the figures have exhibited a decline over time specifically in England. The total count of new apprenticeships dropped from 509,400 in 2015-16 to 321,400 in 2020-21. Following a slight increase during the pandemic, it reached 337,100 in 2022-23. 

The government has expressed a desire to encourage more young individuals to embark on apprenticeships, with 23% of new apprentices being under 19 last year. However, the number of young people initiating apprenticeships dwindled from 131,400 in 2015-16 to 65,200 in 2020-21, then rose to 77,700 in 2022-23. Dropout rates in England stand at approximately one in two, with just over half (53.4%) of apprentices successfully completing and passing their final assessments in 2021-22. This figure falls notably short of the government's target of 67% by the conclusion of 2024-25.

Source: bbc‍